SAP Shares (ETR: SAP) Hit New Low as Selloff Gathers Pace

SAP's share price (ETR: SAP) plummeted to a new low of €207.55 today, with the decline accelerating as markets digested a mix of disappointing financial results, regulatory scrutiny, and broader industry concerns. The stock is now firmly entrenched in bear market territory, having fallen 25% since June and registering a year-to-date decrease of 12.79%.

The recent downturn is rooted in several key developments. In October 2025, SAP reported third-quarter revenues of €9.08 billion, falling short of the €9.17 billion expected by analysts. While cloud revenue experienced growth, the 22% increase represented the slowest pace since Q4 2023. This slower growth, coupled with cautious full-year cloud revenue projections (€21.6 to €21.9 billion), triggered an initial 2% decline in the share price upon announcement.

Adding to the downward pressure, SAP is currently facing an antitrust investigation by the European Commission. The investigation centers around potential anti-competitive practices related to software support and maintenance. In response, SAP has proposed concessions aimed at facilitating customer transitions to competing software and clarifying its fee structure. The Commission is currently soliciting feedback on these proposed remedies.

The challenges facing SAP have prompted several financial institutions to reassess their outlook on the company. TD Cowen lowered its price target from $350 to $330, maintaining a Buy rating but acknowledging the mixed third-quarter results and the cautious cloud revenue forecast. BMO Capital Markets also reduced its price target, from $307 to $300, citing strong revenue visibility but expressing concerns regarding a potentially weakening macroeconomic environment. 

Broader industry headwinds have also contributed to the selloff. In August 2025, European software stocks, including SAP, experienced significant declines amid growing concerns about the potentially disruptive impact of artificial intelligence. SAP's shares dropped over 6% during this period, marking its largest single-day loss since October 2020.

SAP is also reportedly considering renewing its bid to acquire BlackLine, a Los Angeles-based accounting software firm, for $4.5 billion. While an initial offer was rejected in June, SAP is evaluating its next steps, with the potential acquisition intended to bolster its cloud financial offerings.

The  mix of revenue miss, antitrust scrutiny, analyst downgrades, AI concerns, and strategic restructuring has weighed heavily on investor sentiment, driving the recent decline in SAP's share price. With questions mounting up, it could take something significant to shift sentiment from here.